WHY IN NEWS

  • On 3rd September 2025, the Union Cabinet approved a ₹1,500 crore incentive scheme to promote recycling of critical minerals from battery waste and e-waste.
  • The scheme is part of the National Critical Mineral Mission (NCMM) and aims to reduce India’s dependence on imports by developing domestic recycling capacity for key minerals.
RECYCLING OF CRITICAL MINERALS explained for UPSC

WHAT IS E WASTE RECYCLING?

E-waste recycling is the process of recovering valuable materials and safely disposing of hazardous components from discarded electronic devices like:
  • Mobile phones
  • Computers
  • Televisions
  • Refrigerators
  • Batteries
  • LED lights
These devices contain precious metals, rare earth elements, and toxic substances.

WHAT ARE CRITICAL MINERALS?

Critical minerals are strategic raw materials essential for:
  • Modern electronics
  • Renewable energy (solar panels, wind turbines)
  • Batteries (especially for EVs)
  • Defence technologies

They include:

  • Lithium
  • Cobalt
  • Nickel
  • Rare Earth Elements (REEs)
  • Tantalum
  • Gold, Silver, Palladium
  • Indium, Tellurium, etc.
India currently imports most of these minerals, making them economically and geopolitically critical. E WASTE RECYCLING TO EXTRACT MINERALS When e-waste is recycled:
  1. Devices are collected and dismantled.
  2. Components are shredded or smelted.
  3. Metals and critical minerals are extracted through:
    • Hydrometallurgy (using acids)
    • Pyrometallurgy (using heat)
    • Bioleaching (using bacteria)
  4. These processes help recover valuable materials and reduce mining dependency.

CRITICAL MINERAL RECYCLING INCENTIVE SCHEME (2025)

Feature Details
Name Critical Mineral Recycling Incentive Scheme
Approved by Union Cabinet (Chaired by PM Narendra Modi)
Date of Approval 3rd September 2025
Scheme Outlay ₹1,500 crore
Duration 6 years (FY 2025–26 to FY 2030–31)
Under National Critical Mineral Mission (NCMM)
Target Develop recycling capacity & extract critical minerals from secondary sources

ELIGIBLE FEEDSTOCK (SECONDARY SOURCES)

  • E-waste
  • Lithium-ion battery (LIB) scrap
  • Other scrap: e.g., catalytic converters from end-of-life vehicles

ELIGIBLE BENEFICIARIES :

  • Large, established recyclers
  • Small recyclers and start-ups
1/3rd of total scheme outlay reserved for small/new recyclers

COVERAGE & APPLICATION :

  • Applicable to:
    • New units
    • Expansion / modernization / diversification of existing units
  • Incentives available only to entities engaged in mineral extraction, not just black mass production

SCHEME INCENTIVES

1. Capital Expenditure (Capex) Subsidy
  • 20% subsidy on eligible:
    • Plant & machinery
    • Equipment
    • Associated utilities
  • Reduced subsidy if production starts beyond the specified time
2. Operating Expenditure (Opex) Subsidy
  • Applicable from FY 2026–27 to FY 2030–31
  • Linked to incremental sales over base year (FY 2025–26)
  • Disbursed in 2 stages:
    • 40% in 2nd year
    • 60% in 5th year

SUBSIDY CEILING

Entity Type Capex + Opex Ceiling Opex Ceiling Only
Large Entities ₹50 crore ₹10 crore
Small Entities ₹25 crore ₹5 crore

EXPECTED OUTCOME

Parameter Expected Impact
Recycling Capacity 270 Kilo Tonnes (KT) annually
Critical Mineral Output 40 KT annually
Total Investment ~₹8,000 crore
Jobs Generated ~70,000 (direct & indirect)

CONSULTATIVE PROCESS

  • Several rounds of stakeholder consultations held:
    • Industry meeting
    • Seminar sessions
    • Inter-ministerial reviews